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Independent Contractors Employer Liability Issues

Independent contractors are individuals or entities that perform work for other individuals or entities, but are not employees of those individuals or entities. Whether a worker is an employee or an independent... more +
Independent contractors are individuals or entities that perform work for other individuals or entities, but are not employees of those individuals or entities. Whether a worker is an employee or an independent contractor is not always an easy determination. However, due to differences in tax and liability treatment, misclassifying an employee as an independent contractor can have serious consequences. Autonomy is the defining feature of independent contractor arrangements. Independent contractors control the manner and method of how work is performed while payers control the desired result. Control over schedule and number of hours worked, ownership of equipment or tools, permanency of relationship, and acceptance of jobs from multiple entities are all possible factors in determining whether a worker is an employee or independent contractor.   less -
McGlinchey Stafford

Florida CHOICE Act Expands Enforceability of Non-Compete and Garden Leave Agreements

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On July 1, 2025, Florida’s Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act took effect, ushering in substantial changes to the state’s non-compete law under Florida Statute §...more

Morgan Lewis

New Restatement Rule Expands Vicarious Liability for Employee Sexual Misconduct

Morgan Lewis on

The American Law Institute approved a controversial new provision of the Restatement of Torts, Third expanding vicarious liability to employers for certain sexual assaults committed by employees against third parties who are...more

Troutman Pepper Locke

Health Care Industry Under Attack for Independent Contractor Misclassification: July 2025 IC Legal News Update

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Unless you were in the health care industry, July 2025 was a relatively slow month for judicial developments in the law of independent contractor (IC) misclassification and compliance. Only two significant IC cases came to...more

Epstein Becker & Green

Training Artificial Intelligence and Employer Liability: Lessons from Schuster v. Scale AI

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The discussion of Artificial Intelligence (“AI”) in the workplace typically focuses on whether the AI tool and model has a discriminatory impact. This means examining whether the AI output creates an unlawful disparate...more

Troutman Pepper Locke

Comments Submitted to New Jersey’s Proposed Regulation Expanding “ABC Test for Independent Contractor Status”

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The following comments were submitted by Richard J. Reibstein, the publisher of this legal blog, critiquing the proposed regulation of the New Jersey Department of Labor and Industry (the Department) regarding the so-called...more

Epstein Becker & Green

Tasked with Troubling Content: AI Model Training and Workplace Implications

The discussion of Artificial Intelligence (“AI”) in the workplace typically focuses on whether the AI tool and model has a discriminatory impact....more

Brooks Pierce

Fourth Circuit Affirms Multi-Million Dollar Decision, Underscoring Risks in Worker Misclassification

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Many businesses rely on independent contractors to stay flexible, control costs, and meet fluctuating demand, but misclassifying those workers can carry massive financial consequences. On July 17, 2025, the Fourth Circuit...more

Jackson Lewis P.C.

When ‘Independent Contractors’ Are Actually Employees: Lessons from the $9.3M Steadfast Medical Staffing Judgment

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The U.S. Court of Appeals for the Fourth Circuit recently affirmed a $9.3 million judgment against a medical staffing agency in a Department of Labor (DOL) Fair Labor Standards Act (FLSA) enforcement action alleging nurses...more

Miller Nash LLP

[Webinar] Construction Series—Navigating Oregon's New Construction Labor Payment Law (SB 426) - August 20th, 8:30 am - 9:30 am PT

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Will owners and contractors have to pay twice for labor? Are you ready for SB 426? Join us for a free webinar hosted by Miller Nash LLP that breaks down Oregon’s newly passed Senate Bill 426 and how it could significantly...more

Marshall Dennehey

Federal Court Shields Lyft from Liability in Driver Altercation, Citing Independent Contractor Status

Marshall Dennehey on

Hollins v. Lyft, Inc., 2025 WL 915412 (N.D. Ga. Mar. 12, 2025) - The United States District Court for the Northern District of Georgia granted summary judgment in favor of Lyft in a personal injury claim stemming from an...more

Constangy, Brooks, Smith & Prophete, LLP

Fourth Circuit’s Steadfast ruling clarifies independent contractor status

The majority of a three-judge panel of the U.S. Court of Appeals for the Fourth Circuit has upheld a finding that a medical staffing agency misclassified approximately 1,100 nurses as independent contractors and owed them...more

Roetzel & Andress

Trucking Companies Face Growing Wage & Hour Class Action Risks

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Are you a trucking company? If so, you may be exposed to class action lawsuits for minimum wage, break time, and overtime violations. Trucking companies are essential to our national economy and security. However, trucking...more

Morgan Lewis

Need for Action: Employment of Freelance Teachers

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On June 28, 2022, the Federal Social Court (BSG) ruled on the employment of a music teacher (case reference: B 12 R 3/20 R). The teacher was deployed as a "freelance" teacher at a music school in Herrenberg and received a fee...more

Troutman Pepper Locke

Home Improvement and Legal Services Industries Under Attack for Independent Contractor Misclassification Claims: June 2025 IC...

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Last month, there were only a couple of legal developments in the area of independent contractor (IC) compliance and misclassification, but they were significant because two more industries — home improvement and legal...more

FordHarrison

EntertainHR: Advice from Anora: Classify Correctly!

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I have said it many times – summer is for movies! Blockbusters, indies, and comedies (or whatever films you enjoy) just make a summer night better. Summer is also halfway to the film industry’s most illustrious awards show,...more

Lewitt Hackman

Franchisor 101: Duty of Care

Lewitt Hackman on

The Texas Supreme Court reversed a lower court’s decision against a franchisor based on a theory of negligence after a customer was assaulted by an employee of the franchisee. The court concluded that franchisor did not owe a...more

Spilman Thomas & Battle, PLLC

NC Court of Appeals Clarifies How Insurers’ Duties to Defend and Indemnity Are Triggered in Atypical Employment Relationships

The Court of Appeals’ opinion in N.C. Farm Bureau Mut. Ins. Co. v. Young, (No. COA24-594) addresses how a court is likely to assess the duty to defend and the duty to indemnify under an insurance contract, and the interplay...more

Littler

Colorado Enacts Increased Wage Act Penalties and Enforcement, Allows Local Governments to Increase Tip Credit

Littler on

Colorado has enacted House Bill 25-1001, which significantly amends the state’s wage and hour laws by enhancing enforcement mechanisms, expanding employer liability, and strengthening employee protections. The law will take...more

Steptoe & Johnson PLLC

Understanding the Impact on Employers of West Virginia’s Formal Recognition of Negligent Supervision Claims

In a recent important decision, the Supreme Court of Appeals of West Virginia formally recognized that a third party can sue an employer for negligent supervision of an employee, even if the employee’s intentional or reckless...more

Fisher Phillips

New Jersey Sharpens Focus on Misclassification Issues, Inches Closer to Adopting “ABC Test” Regulations: What Businesses Need to...

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As independent contractor misclassification enforcement eases up at the federal level, New Jersey is doubling down on the state’s strict test for determining how a worker should be classified under various state laws. The New...more

Keating Muething & Klekamp PLL

The Independent Contractor Tug-of-War: Navigating the Latest DOL Shifts

Classifying a worker as an independent contractor rather than an employee can be one of the more complicated—and risky—decisions an employer can make, as misclassification can lead to serious legal and financial consequences....more

Seyfarth Shaw LLP

Restrictive Covenant Law For The First Four Months of 2025

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With the FTC Ban on non-competes essentially dead in the Courts of Appeal, various states and agencies have taken up the mantle to further limit or expand the use of restrictive covenants for certain populations in 2025....more

Fisher Phillips

DOL Easing Up on Independent Contractor Misclassification Enforcement: 3 Key Points on This Big Win for Businesses

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Businesses that rely on freelancers or the “gig economy” have cause for optimism now that the Department of Labor just announced it will no longer enforce a Biden-era final rule that made it harder to classify workers as...more

Poyner Spruill LLP

Third Circuit Finds “Modicum” of Control Insufficient to Create Employment Relationship

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In order to state a claim for discrimination under Title VII of the Civil Rights Act of 1964 (Title VII), a plaintiff must first demonstrate that he or she had an employment relationship with the defendant.  Although various...more

Fisher Phillips

New EU Platform Work Directive Impacts Freelancers and Gig Economy: Here’s What Businesses Need to Know

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The European Union took a big step last year towards regulating digital labor platforms – and member states will need to adopt the new directive before the end of 2026. The directive seeks to curb worker misclassification,...more

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